Distribution of crop loan starts the agricultural calendar for farmers. Disbursed by various banks, this loan is utilised to buy seeds, fertilizers etc and post harvest the farmer repays the loans.
The prediction of a good monsoon may not be enough to bring cheers to farmers of Marathwada, as questions are being raised over disbursement of crop loans in the region. The Maharashtra Gramin Bank has written to the district collectors of eight districts expressing inability to disburse crop loans for the upcoming kharif season. This will affect around 3 lakh farmers spread across 3,000 villages.
Distribution of crop loan starts the agricultural calendar for farmers. Disbursed by various banks, this loan is utilised to buy seeds, fertilizers etc and post harvest the farmer repays the loans. Along with cooperative banks, public sector banks, Gramin Bank and scheduled commercial banks distribute such loans.
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Proper access to institutional finance has often been stressed to ensure farmers do not fall prey to private money lenders. The Maharashtra Gramin Bank came into existence in 2009 post the amalgamation of the regional rural banks in Marathwada region.
With the Bank of Maharashtra as sponsor bank the Gramin Bank has both the central and state governments as stakeholders. Along with the district central cooperative banks, the Gramin Bank is a major player in disbursement of crop loans in the rural areas of Marathwada.
The bank had disbursed Rs 1,041 crores and Rs…